Canasia has been developing a 3 X 660MW thermal project in the heavily populated but severely power deficient State of Uttar Pradesh, India. The strength of this power project is its location, in the western part of the State, which is more developed and industrialized, and includes the major ‘load centers’ of the cities of New Delhi and Agra.

Due to heightened environmental concerns globally, the Company is developing this project as a supercritical ‘clean coal’ technology plant, for the 1,980MW. Additionally, the Company is actively considering natural gas as a possible viable alternative. The Company has prepared a Detailed Project Report (“DPR”) for the building of all 3 units, for an effective generating capacity of almost 2,000MW.

Previously the Company has cleared 800MW in the State, in approximately two years, and now anticipates similar results with the proposed 1,980MW plant. The Company is committed to this project as the long-term fundamentals of the power plant and the State are very strong. The U.P. State is the most populated in India, with over 150 million people, and on most days has to cope with less than 5,000MW of power, including drawing from the Central Government generating stations. The long-term potential of developing power in the State is very significant, as it requires at least four times its current generating capacity.

The Company has received financial contribution from CIDA Inc., an agency of the Canadian Government, to conduct and complete a ‘Detailed Capital Project Study’, for this Project. The Study was led by Stikeman Elliott, LLP (Montreal).